Record Industrial Rents May Force Businesses Out of Aberdeen

Aberdeen’s booming energy sector is driving up demand for industrial accommodation but in the long term could prove costly to the city’s economy if businesses are forced to locate elsewhere.

Industrial property expert Graeme Watt said rental and capital values for both new and second hand buildings are being pushed to record levels because of a limited supply of suitable accommodation.

And while this is good news for landowners and developers, in the long term it could constrain business activity to the extent that companies may have to look at more viable geographic locations to grow their enterprises.

Mr Watt, director of property consultants FG Burnett, said: “The buoyant energy sector in Aberdeen is driving demand for industrial accommodation not just in the city but across the north east. Due to the limitation of supply, rents for both new and second hand buildings are being pushed up across the spectrum, arguably unrealistically in terms of some older poorer quality second hand buildings.”

FG Burnett report that good quality new builds, which included both spec builds and bespoke packages at Peterseat Park, have all been let, although there is more land available for further development at the Altens site.

And at Ocean Trade Centre, also in Altens, three units of each of around 3000 sq ft, have recently been let at record rents in excess of